Activist Elliott Management takes stake in Interpublic Group

July 24 (Reuters) - Hedge fund Elliott Management has taken a 6.7 percent stake, representing about $570 million, in advertising firm Interpublic Group of Cos Inc and announced plans to meet with its board to discuss boosting shareholder value.

Elliott Management, the $24 billion hedge fund founded by Paul Singer, said in a regulatory filing that IPG's shares "are undervalued and represent an attractive investment opportunity." The hedge fund said it wants to "engage in a constructive dialogue" with the company's board of directors to maximize shareholder value.

IPG shares were up 0.8 percent to $20.01 in morning trading. A spokesman was not immediately available to comment.

IPG, whose agencies include McCann Erickson and FCB, has long been rumored as a takeover candidate and the speculation has only increased as the advertising sector consolidates. France's Publicis (Paris: FR0000130577 - news) and the U.S.-based Omnicom planned to merge in a $35 billion deal that would have resulted in the world's largest advertising agency, billing it as a better way to compete more effectively in the digital arena.

That potential marriage collapsed as the two companies clashed on culture and couldn't agree on leadership or structure.

IPG's clients include General Motors (NYSE: GM - news) , Unilever and Johnson & Johnson (NYSE: JNJ - news) .

This is the second bet this week by Elliott Management, which invested more than $1 billion in data storage products maker EMC (Taiwan OTC: 5299.TWO - news) with an aim to push it to spin off its VMware unit. (Reporting by Liana B. Baker and Jennifer Saba; Editing by Nick Zieminski)